KEEPING ON TRACK

High-speed rail is a visionary project that holds the potential to alter transportation patterns in the state, but many difficult challenges must be overcome before the promise of affordable high-speed rail travel comes to pass, and any one of these challenges could significantly delay or even derail the project’s completion. Approximately $4.7 billion in state and $3.3 billion in federal money have been committed to fund initial construction of the high speed rail system in the Central Valley and to improve existing rail and transit connections to that system; however, just $37 million was allocated to the San Diego region for improvements to the trolley’s Blue Line.

Proposition 1A authorized a Peer Review Group – composed of eight independent experts with broad knowledge in the planning, design, construction, financing and management of transportation projects – to review the California High Speed Rail Authority’s (CHSRA) business, financing and construction plans and to report its findings and recommendations to the state Legislature. The group has issued several detailed reports (at
www.cahsrprg.com) and many of its recommendations have been embraced by the rail authority or included in recent legislation signed by the governor. One of the key changes in the revised 2012 Business Plan reflects the CHSRA’s effort to review and improve the concept of high speed rail as an integrated part of California’s broader transportation network, ensuring its connectivity to commuter rail, mass transit and bus services. This has led the rail authority to emphasize a phased approach to building the high-speed rail system, an approach strongly advocated by the Peer Review Group given the poor economic conditions facing state and federal budgets, the tremendous scale of this megaproject, and the need to provide some immediate benefits to transit and intercity rail travelers.

Faced with a September 2017 deadline for the expenditure of $3.3 billion in federal funds, the CHSRA is under pressure to hire the proper management team and other personnel needed for the oversight of hundreds of contractors and consultants, to clear the environmental review process (including lawsuits) and receive the necessary permits, and then to construct the initial phases of the project within budget and on schedule. This would be a serious challenge under the best of circumstances with an experienced management team, but one that seems fraught with risk due to the 2017 deadline. That’s why the Legislature chose to place many conditions and restrictions on the expenditure of funds when it authorized the sale of $4.7 billion in Proposition 1A bonds. These conditions include required reports to the Legislature by the rail authority which include the preparation of a detailed funding plan, the receipt of all necessary environmental clearances before signing construction contracts, accountability for expenditures including an audit and close oversight of local agency partners such as Bay Area Rapid Transit and the San Diego Association of Governments, and regular progress reports reviewing the budget, schedule and risks associated with the project.

Hopefully, these reports will serve to highlight problems before they grow into expensive cost overruns or delays that threaten completion of the early phases of the project. And even tighter restrictions must be met before any construction can start in 2013. The Legislature wants to ensure that sufficient management and supervisory personnel are in place at the rail authority, including a clear organizational chart with a defined management approach and oversight measures to identify and address risks that always surface in a megaproject of this nature. These measures reflect an effort by the Peer Review Group, the Legislature, the governor and the CHSRA to ensure the efficient use of scarce taxpayer dollars.